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Many retirees who own homes want to find out how much equity has built up in their home because they may want to get a cash lump sum to help them with their living expenses. There are a lot of equity release schemes out there, but you have to find the right one for you. This means you should compare equity release schemes. In order to get started, a retiree will need to go on the Internet and type in the keywords “equity release schemes” to be shown sites that could help him or her in choosing the best equity release scheme.

Look for a site that allows you to compare equity release schemes from several companies. The site may be overwhelming to you at first since you may not know which equity release scheme to choose. Contact an independent equity release adviser who can answer your questions and help you to choose the best equity release scheme.

Before you contact the independent equity release adviser, you can get an estimate on how much of a cash lump sum you could receive. You can either use the calculator on the site or click on any of the equity release schemes. To make sure that you are choosing the right equity scheme it is best to speak with an adviser.

When you speak with an independent equity release adviser, he or she may ask you a series of questions about your home, such as if you would want to leave a portion of the home to a relative when you pass away. If so, you may want to consider a home reversion. With a home reversion, you are selling a part of your home,so that the other portion will be inherited by a loved one. The loved one can always sell their portion when you pass away.

Home Reversion Explained in Detail
You should know that there are several types of programmes out there and home reversion is just one option of equity release. It has its up and down sides that you will want to analyse before you determine it is the best answer.

Home reversion sells a part of your home. You can even sell your entire home. As long as a person is over the age of 65 and living in your home they can be named as part of the home reversion plan. Once you sell a part of your home you will sign a lifetime tenancy agreement that stipulates you can remain in the house rent free until you die or decide to move out. Like the people named in the home reversion contract, you need to make certain those same people are listed in the tenancy agreement.

This is the only way to guarantee that a partner or other family member can remain in the home until everyone has died or decided to move out. Children are not given the same consideration because their life expectancy is too long.

A home reversion provider makes money only when the house is sold at current market value. Since they cannot sell the home while you still own a part of it and still live in it, they must wait. So while there is a portion that will go to your beneficiaries it has to be sold to the home reversion provider upon your death. The provider will give a lump sum for the remaining portion and make their money back from selling the house.

As long as you do not sell your entire home during your lifetime, there is a guarantee of a cash sum for your beneficiaries. This is much different than the lifetime mortgage equity release option.

Lifetime Mortgages in Detail
A lifetime mortgage is a loan that you do not make payments on until you die or sell the house. This means you live in your home without the trouble of a mortgage, but the interest builds up on the principle. It could leave your beneficiaries without any inheritance including the house.

When it comes to choosing an equity release scheme, the independent equity release adviser is going to make sure that you benefit from it. If your main concern is to just have a cash lump sum so that you can live comfortable while you are still alive, that is what the adviser will find for you. No matter which equity scheme you choose, you can still live in your home for free. Through websites that allow you to compare equity release schemes and advisers you will find the answer to your monetary needs.